EXPEDIA OFFERS $703M FOR WOTIF

Written on the 7 July 2014

EXPEDIA OFFERS $703M FOR WOTIF

US travel group Expedia is set to acquire Wotif.com Holdings Limited (ASX:WTF) for $703 million.

The Scheme of Implementation agreement of $3.30 per share represents a 31 per cent premium on last week’s average share price, as well as a special dividend of 24 cents each.

Managing director and CEO Scott Blume (pictured) says the deal is the way of the future for the company.

“Joining Expedia allows us to rapidly advance two of our strategic initiatives – strengthening offshore supply and improving our customer and supplier value propositions through enhanced technology,” says Blume.

“We believe this will help solidify our position as the premier travel brand in Australia and New Zealand, grow our business across the Asia-Pacific region and increase our exposure and brand awareness to inbound international travellers.”

Wotif directors, along with founders Graeme Wood and Andrew Brice, collectively control 35.7 per cent of the Brisbane-based travel retailer.

The board has backed the offer, after assessing the changing dynamics of the market and potential risks operating as an independent player.

Chairman Dick McIlwain says the move will maximise shareholder value and position the company for international growth.

“The Expedia group is well placed to leverage and support our strong brands, operations, people and customer relationships in an online travel market that is becoming increasingly global,” McIlwain says.

“On behalf of the board, I want to recognise and thank the entire Wotif Group team for all of their hard work over the last 14 years – we are exceptionally proud of what they’ve accomplished in building a very successful online travel company in the region.”

The takeover is expected to be finalised in October, subject to WTF shareholder and court approval.

The company operates a number of travel brands across the Asia-Pacific region, including lastminute.com.au, travel.com.au, Asia Web Direct and Arnold Travel Technology.


Latest News

KOPLOVITZ GIVES SPRINGBOARD TO AGILE ENTREPRENEURS

FOR Kay Koplovitz, the key to being a successful entrepreneur is an agile mind - one that is always learning and q...

VITA GROUP SHARES SURGE UPON RESULTS

VITA Group (ASX: VTG), the Brisbane telco retailer tied up with Telstra (ASX: TLS), saw its share price surge 12 p...

SONAND TURNS THE TIDE AT SURFSTITCH

SURFSTITCH (ASX:SRF) has reduced its losses in the first half of FY17 as new CEO Mike Sonand executed his turnaround ...

EUREKA IMPROVES WHILE MANAGEMENT REMAINS UNIMPRESSED

EUREKA Group has collected the gains on its 'buy and build' strategy to achieve a net profit of $6.29 mill...

Related News

KOPLOVITZ GIVES SPRINGBOARD TO AGILE ENTREPRENEURS

FOR Kay Koplovitz, the key to being a successful entrepreneur is an agile mind - one that is always learning and q...

FASHION RETAILER'S TAKEOVER IN DOUBT AS PROFIT CLIMBS

IN the thick of takeover talks, Specialty Fashion Group (ASX: SFH) worked hard to cut costs and see its bottom lin...

HOW TO TAKE CONTROL OF YOUR CAREER THROUGH TRAINING

GIG economy, remote working, and freelance Friday are more than just buzz terms; our workforce is changing, and so...

EVERYTHING YOU NEED TO KNOW ABOUT THE NATIONAL BROADBAND NETWORK

THE National Broadband Network (NBN) is more than an internet connection, it is an opportunity to transform your b...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter